Brad Feld

Tag: BSG

The past is ungraspable,
the present is ungraspable,
the future is ungraspable.

– Diamond Sutra

Now that it’s 2018, the inevitable predictions for 2018 are upon us.

I’m not a predictor. I never have been and don’t expect I ever will be. However, I do enjoy reading a few of the predictions, most notably Fred Wilson’s What Is Going To Happen In 2018.

Unlike past years, Fred led off this year with something I feel like I would have written.

“This is a post that I am struggling to write. I really have no idea what is going to happen in 2018.”

He goes on to make some predictions but leave a lot in the “I have no idea” category.

I mentioned this to Amy and she quickly said:

And that, simply put, is my goal for 2018.

As I read my daily newsfeed this morning, I came upon two other predictions that jumped out at me, which are both second-order effects of US government policies changes.

The first is “tech companies will use their huge hoards of repatriated cash to buy other companies.” There is a 40% chance Apple will acquire Netflix, according to Citi and Amazon will buy Target in 2018, influential tech analyst Gene Munster predicts. The Apple/Netflix one clearly is linked to “Apple has so much cash – they need to use it.” While the Amazon one is more about “Amazon needs a bigger offline partner than Whole Foods”, it feels like it could easily get swept in the “tons of dollars sloshing around in US tech companies – go buy things!”

The second is “get those immigrants out of the US, even if they are already here and contributing to our society.” H-1B visa rules: Trump admin considers tweak that may lead to mass deportation of Indians is the next layer down, where the Executive Branch can just modify existing rules that have potentially massive changes.

I’ve been reading The Lessons of History by Will and Ariel Durant. Various Cylons on BSG had it right when they said, “All of this has happened before. All of this will happen again.”


It’s so disheartening to me. I don’t read newspapers or watch the news on TV deliberately to avoid the noise. Periodically I’ll get a little signal of value from somewhere, usually Amy, but generally I can focus on what I care about.

Twitter has always been that refreshing place where I can quickly find out what is going on in my tech world. I follow mostly entrepreneurs and VCs – some who I know and some who I don’t know. I have a few companies in my feed. But no newspapers, no magazines, and no mainstream media.

Suddenly it’s all politics all the time. The retweeting of stuff I simply don’t care about overwhelms my feed. As my brain gets hit over and over again by the noise of the RNC, DNC, Trump, Clinton, and zillion other people bloviating about what I think is one of the strangest elections I’ve every experienced as a human, it has become hard to dodge and ignore it.

I think today might be the turning point for me. I’m utterly disgusted by the bullying, lies, racism, and hate going on. I’m starting to believe the Russian conspiracy theories. I’ve hit my personal moment of “I’ve got better things to do with my day.”

I know it’s just going to get worse between now and the election. Noisy. Crazier. More offensive and intolerable. Less rational.

Amy reminds me that this isn’t anything new. In the 1930s the anti-immigrant sentiment was high as the economy declined during the great depression. In the 1940s the America First Committee was dominant. In the 1950s McCarthy and the House Un-American Activities Committee was front and center. In the 1960s we had civil rights, FBI overreach, and the setup for the 1970s with Nixon. And on and on and on.

https://www.youtube.com/watch?v=6bOy3RNyWME

All this has happened before, and all this will happen again. It’s time to focus on what I care about and not let the noise take over my brain.


I was at a fascinating dinner with a bunch of founders and investors last night. Until I was 35, I was often the youngest guy in the room. While this was a seasoned crowd, much of the experience – both around creating companies and funding companies – started around the mid-2000s. As someone who has been doing this since the late 1980s (I started my first company in 1987) I definitely felt like one of the old guys in the room.

At some point, the conversation turned to the current state of things in the broad entrepreneurial ecosystem – both company-side and investor-side. It rambled around for a while but kept locking down on specific issues around the current state of financings and exits, alignment between founders/investors/acquirers, cultural norms that were front and center in today’s startup communities, and a bunch of other issues that tied back to the wonderful Game of Thrones line “winter is coming.”

Throughout the evening, I was regularly reminded of my favorite BSG quote. “All of this has happened before, and all of it will happen again.”

Another one of my favorite quotes is the one attributed to Mark Twain, “History does not repeat itself, but it rhymes.Phil Weiser, Dean of the CU Law School and a good friend, often pulls this one out to remind us to look to the past to understand the future.

While we’ve been in a particular strong part of the startup / entrepreneurship cycle for the past four years, many people are nervous, talking about it, reacting to it, and getting confused, frustrated, and scared by what is going on. Others are in total denial of reality, which never works out well in the long run. Whether you follow the BSG theology or subscribe to Mark Twain, or are somewhere in-between, you recognize the value of understanding the past to exist in the present and deal with the future.

I came out of dinner with about 20 topics for blog posts, many which reflect on lessons I’ve learned multiple times over the past 30 years, which can be applied to today, and tomorrow, and the next few years, regardless of what actually happens. Until last night I wasn’t particularly motivated to blog around this stuff, but the discussion, and people in the room, really stimulated me to put some energy into this. So I plan to.

But remember, all of this has happened before, and all of it will happen again. So if you are impatient, I encourage you to go look at posts from me, Fred Wilson, and David Hornik from 2004 – 2007 for a taste of what I would characterize of “the re-emergence from winter.”


There is a cliche in the financial world that has been around forever.

“Two things drive decisions: Greed and Fear”

For the past few years, we’ve been a zone where greed has been dominating. Every now and then a little fear creeps in and then gets squished into the corner by chants of “things are different this time” and “that’s just PTSD from the Internet bubble.”

Recently, the fear seems to be sticking around. There are plenty of people trying to kick it away, shake it off, or ignore it. But it lingers. And the smell of it gets stronger.

I had an exchange with a CEO the other day who was at an event in the bay area and commented on the attendees at the event. The telling line was:

They’ve never read the RIP Good Times deck, they don’t remember the Bin 38 fiasco, they think it’s the first go round.

I once again rolled out my favorite BSG line.

All this has happened before and all of it will happen again.

I’m a strong believer that you can build great companies in time of both greed and fear. But you have to be paying attention and operating under the right assumptions. You don’t have to believe history repeats itself, but you should accept that history rhymes. And one big rhyme is that the shift from greed to fear happens much faster than the shift from fear to greed.

If you are a founder running a high growth, VC backed company, here are a few questions to ask your investors today.

  1. What is the maximum amount of monthly net burn you are comfortable with for us right now?
  2. Based on our current course and speed, we run out of money in X months. If we can’t find a new lead investor, will you write us a check? How much and on what terms?
  3. If companies start failing left and right, do you think it will impact us in a meaningful way (either good or bad)? If yes, how?

There are no correct answers to these questions but they’ll give you a sense of how your investors are thinking along the greed – fear spectrum. You get bonus points if you ask the investor to walk you through what they were doing the last time things shifted from greed to fear and to tell you stories about things that went well for them, went poorly, and what they learned.

Don’t be afraid to explore what could happen well before it does. Our history rhymes with the famous John Galt quote “Nobody stays here by faking reality in any manner whatever.”


Yesterday I read Kara Swisher’s post What Does the Recent Tech Stock Downturn Mean? The Truth Is Nobody Knows. It’s great. Go read it – I’ll wait for you.

In the last two weeks there’s been a flurry of articles about the implications of a 25% decline in the public market value of a bunch of Internet stocks. They range from “the sky is falling” to “the IPO market window is closing” to “there will be more stupid television shows about Silicon Valley” (I prefer Game of Thrones and 24, thank you very much.)

As many of the Cylons from BSG are fond of saying, “All this has happened before, and all of it will happen again.”

I remember a moment in time in 1997. We were in the middle of fundraising for Softbank Venture Capital (which became Mobius Venture Capital.) It was the first VC fund I’d helped raise. We probably had about $150m committed and were running around trying to get to $300m for what we had positioned as a dedicated Internet VC fund. I can’t remember the month, but I think it was in the summer, that all the public Internet stocks dropped a bunch (probably 25%). Suddenly every meeting we had turned cold with all of our potential LPs either asking how we were going to make money on the Internet or asserting that there was no way that we’d make money on the Internet. A few months later the public markets for Internet stocks turned around and we closed a $330 million fund which ended up doing extremely well.

In 1999 we filed an S-1 to take Sage Networks public. I was a co-founder and co-chairman. We were planning to go public in the early spring, but in February we acquired a company called Interliant which doubled our side. We had to grind through a refiling of our S-1 which cost us a month. We finally hit the road with the intention of going public by the end of April. Our underwriters (Merrill Lynch) told us not to worry that the SEC hadn’t cleared our filing yet – they always did it a few days before you went public. I spent three weeks on a road show with our president and CFO building the book. Day after day passed and we didn’t hear from the SEC. Two days before we were supposed to price, the book was 10x oversubscribed and our $9 – $11 price looked like it could move up meaningfully. They day we were supposed to price we still hadn’t heard from the SEC. “Don’t worry” said the banker at Merrill Lynch, “We’ll get it done.” The next day, when we were supposed to be trading, a fax came through from the SEC. It was 20 pages long and had about a month’s worth of work to pull together on the F-pages of the filing (we had acquired 20 companies.) That night we all drank a lot of scotch – we knew the IPO wasn’t going to happen that week and we’d just wasted a road show. I remember being completely numb the next day as I flew home from NY to Boulder, not completely understanding how we had just blown the IPO.

A few weeks later Internet stocks started to fall. I vaguely recall that eBay was one of the bellwethers at the time and I think it had a big drop. Suddenly the IPO market window closed. No one was interested in Internet stocks, let alone one that was being tortured by the SEC for accounting disclosure on a bunch of acquisitions of tiny companies.

At the end of June I went to Italy for a week vacation with my wife Amy and my parents. We did a walking trip which I remember being wonderful – 10 miles a day finished off with lots of food and wine in a beautiful Italian countryside. No phones, no email. Until Thursday, when I got a call at the villa we were staying at from one of my board members who said “you have to come home right now.” I responded with “I’m flying home Sunday and will be back on Monday.” He said, “No – now – the road show starts again Monday and you have to be at the printer on Saturday to sign off on the filing.”

I scrambled to find a flight home from the middle of Italy, got to NY by Saturday mid-day, re-started the road show on Monday, and we were public by the end of the week. We went out at $10 and traded up to $15. When I checked the market indexes, they were basically the same as they were two months earlier before things dropped.

Lots of folks are going to pontificate about what is going on in the public markets. Most have an agenda or a vested interest.

If you are an entrepreneur, ignore the pontification and go build your business. Pay attention to the dynamics in the macro, since they will impact you, but don’t get caught up in. Don’t create a narrative to justify something that is going on. Focus on the reality – your reality – and do your best operating in the context in which you can’t control.

All this has happened before, and all of it will happen again.


Often One Number Is All That MattersAs Amy and I get to the end of Season 2 of Battlestar Galactica, I’m noticing more and more management and leadership lessons. Oh – and it’s awesome SciFi.

In my experience, it’s a challenge for CEOs and management teams to get focused on a small set of numbers that drive behavior. I talked about this in my post Three Magic Numbers. I regularly suggest that you should only have three numbers that you focus on daily – that reflect “what is going on right now in the business.”

You should be able to discern what is going on from the daily trend of these numbers. Sure – you’ll look at plenty of other numbers, but these are the three you focus on every day. You don’t need fancy tech for this – just a white board.

If you are a BSG fan, you’ll recall the white board behind President Roslin’s desk. It has one number on it. The number of survivors alive at that moment. This number started showing up in the opening credits some time in Season 2, and after a few episodes I noticed it changing each time in the credits, often based on what had happened in the previous episode.

This is BSG’s KPI. The number of humans alive. Right now.

When I reflect on this KPI, I realize it drives all the behavior on BSG. The easy behavior to focus on is keeping the number from decreasing. But as Gauis eloquently states late in Season 2, if the trend line continues, based on a complex regression analysis he’s done, the human species will be extinct in 18 years. Soon after, Admiral Adama reminds Roslin that the number generally just goes down, and that Roslin had said early on that if the human species is to survive, the colony needs to start “making babies.”

This is an obvious set up for a much more complex social issue – that of pro-life vs. pro-choice. But obvious set up aside, Adama is focusing on the KPI and reminding Roslin that the goal is for it go up, as well as not go down. It turns out there is a lot of richness in the number.

In my world, as companies grow, I notice a proliferation of KPIs being tracked. On a periodic basis, I encourage CEOs to keep paying attention to all the numbers, but surface – on a daily basis – the three magic numbers that drive their business.

Do you know your three magic numbers?